Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

7. Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price of an acquired business over the estimated fair values of the underlying net tangible and intangible assets.

Goodwill consisted of the following:


	Amount
Balance at January 1, 2015	$	39,870
Additions through acquisitions		62,304
Other adjustments		(46	)

Balance at June 30, 2015	$	102,128

During the six months ended June 30, 2015, the following key items impacted goodwill:

•

The Company recognized goodwill of $56,758 in connection with the SkyWave Acquisition

•

The Company recognized goodwill of $5,546 in connection with the InSync Acquisition

Goodwill is allocated to the Company’s one reportable segment, which is its only reporting unit.

The Company’s intangible assets consisted of the following:


		June 30, 2015							December 31, 2014
	Useful life (years)	Cost		Accumulated amortization			Net		Cost		Accumulated amortization			Net
Customer lists	5, 7, 10, 12 and 14	$	86,277	$	(7,069	)	$	79,208	$	21,850	$	(2,939	)	$	18,911
Patents and technology	5 and 10		15,976		(3,161	)		12,815		8,473		(2,259	)		6,214
Trade names and trademarks	3, 4, 5 and 10		2,853		(693	)		2,160		1,690		(481	)		1,209

		$	105,106	$	(10,923	)	$	94,183	$	32,013	$	(5,679	)	$	26,334

The weighted-average amortization period for the intangible assets is 10.3 years. The weighted-average amortization period for customer lists, patents and technology and trade names and trademarks is 10.5, 9.3 and 7.3 years, respectively.

On January 1, 2015, the Company acquired intangible assets in connection with the SkyWave Acquisition of $67,214, including $59,371 relating to customer lists, $6,781 relating to technology and $1,062 relating to trademarks.

On January 16, 2015, the Company acquired intangible assets in connection with the InSync Acquisition of $5,788, including $5,056 relating to customer lists, $632 relating to technology and $100 relating to trademarks.

Amortization expense was $2,635 and $789 for the quarters ended June 30, 2015 and 2014, respectively. Amortization expense was $5,244 and $1,251 for the six months ended June 30, 2015 and 2014, respectively.

Estimated annual amortization expense for intangible assets subsequent to June 30, 2015 is as follows:


	Amount
2015 (remaining)	$	5,286
2016		10,526
2017		10,377
2018		10,339
2019		10,302
Thereafter		47,353

	$	94,183

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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